London Daily

Focus on the big picture.
Wednesday, Jul 15, 2026

British Gas profit expectations downgraded because of 'warm weather'

British Gas profit expectations downgraded because of 'warm weather'

Centrica reveals more help for vulnerable households as it updates the market on its financial performance, saying the group as a whole will deliver a better result than many analysts expect.
The parent firm of British gas has revealed further aid for struggling customers while downgrading profit expectations for its household supply division because of weaker demand.

Centrica said: "Warmer than normal weather in October has contributed towards lower volumes and profits in British Gas Energy".

It also pointed to "broader inflationary and economic pressures" hitting the cost base and customer numbers in British Gas Services & Solutions.

It added: "As a result, we expect adjusted operating profit in our retail division to be lower than current expectations."

Centrica made the announcement as consumer groups and surveys report surging numbers of households leaving the heating off as temperatures drop because of record prices for gas and electricity.

While household energy bills have soared, the wider cost of living crisis is further squeezing spending power.

Inflation is running at a 40-year high of 10.1% and is tipped by the Bank of England to peak at around 11% - lower than it had initially thought.

That is largely because the government's energy price guarantee covering wholesale prices will limit bill increases this winter.

However, it sees rising interest rates to tackle inflation resulting in the average household facing a £3,000 annual increase in their mortgage costs.

That more than outweighs any government help with energy bills.

Centrica said of British Gas: "With over 10 million customers, we are acutely aware of the difficult environment facing many people and we remain committed to doing what we can to support those who need our help most.

"Today, Centrica is announcing an additional £25m of help for our customers, taking the amount we have invested in voluntary customer support this year to £50m.

Its shares soared by up to 9% on its wider trading update, however, as it was intended to set the market straight on the group's financial performance as a whole.

It indicated that many of the analysts who watch its performance might be making overly cautious predictions.

Centrica said group earnings per share were likely to be closer towards the 26p that the most optimistic experts expect than the 15.1p that the most pessimistic have forecast.

"Centrica has continued to deliver strong operational performance from its balanced portfolio since its interim results in July and now expects full-year adjusted earnings per share to be towards the top end of the range of more recent sell-side analyst expectations," its statement said.

The parts of the business that generate electricity and extract gas from under the ground have performed well in recent months.

The company also announced a share buyback of around £250m.
Newsletter

Related Articles

0:00
0:00
Close
Forget Tinder: The Surprising Platform Where People Find Love
Spain in Ecstasy: "We Feel Unbeatable, We Taught the Whole World a Lesson"
UK Government Faces Growing Debate Over Local Control of Immigration Enforcement
UK Biodiversity Forum Highlights Business Need to Protect Natural Environment
UK Parliament to Consider Workplace Temperature Limits Amid Climate Concerns
UK Parliament Considers Independent Immigration Appeals Authority Proposal
BBC Charter Renewal Scrutiny Intensifies as Parliament Reviews Broadcaster’s Future
Parliament Reviews Future of UK Maternity and Neonatal Care Services
UK-India Trade Accelerator Launched to Help Smaller Firms Expand Into Indian Market
UK Business Leaders Meet in Edinburgh to Address Economic Risks From Biodiversity Loss
UK Parliament Prepares for Sir Keir Starmer’s Final Prime Minister’s Questions Before Leadership Transition
Green Party-Led Lewisham Council Moves Against Cooperation With Home Office Immigration Raids
UK Government Faces Parliamentary Pressure Over Capita Contracts in Shared Services Programme
UK Economy Expected to See Modest Growth as OECD Highlights Fiscal and Global Risks
Public Accounts Committee Warns UK Government’s Four Point Three Billion Pound Shared Services Plan Risks Failure
EU and UK Sign Agreement Removing Gibraltar Border Controls After Years of Post-Brexit Uncertainty
OECD Warns UK Must Maintain Fiscal Discipline as Andy Burnham Prepares to Become Prime Minister
UK-India Free Trade Agreement Enters Into Force as Businesses Seek New Growth Opportunities
Harvard Astrophysicist to Lead U.S. Scientific Advisory on Unidentified Aerial Phenomena
On the Island That Did Not Yield to Trump, There Is No Electricity, and 10 Million Live in Darkness
Emergency Sirens Activated Across Bahrain as Interior Ministry Issues Shelter Directives
Key Trends to Watch
United Nations Expert Calls for Full Implementation of Supreme Court Ruling on Legal Definition of Sex
Industry Coalition Urges Labour Lawmakers to Back Continued North Sea Oil and Gas Production
Parliamentary Committee Calls for Tougher Restrictions on Unhealthy Food Advertising
Government Expands Awaab's Law to Cover Heat and Additional Housing Hazards
Energy Regulator Opens Independent Investigation Into National Grid Operator
United Kingdom and European Union Sign Landmark Gibraltar Border Agreement
Chancellor Unveils Financial Services Reform and Artificial Intelligence Strategy at Mansion House
Counterterrorism Police Take Over Investigation Into Killing of Former Minister Ann Widdecombe
Beer Industry Warns UK Rules Could Limit Growth of Alcohol-Free Market
Home Office Faces Legal Challenges Over Asylum Seeker Accommodation Closures
UK Heatwaves Linked to More Than Two Thousand Seven Hundred Deaths as Climate Debate Intensifies
Home Secretary Faces Pressure Over Political Security After Ann Widdecombe Murder Investigation
United Kingdom Opens Trade Consultation With Indonesia, Philippines, United Arab Emirates and Uruguay
Robert Jenrick Joins Reform UK After Leaving Conservative Party Leadership Role
Counter-Terrorism Police Take Over Investigation into Murder of Former MP Ann Widdecombe
Andy Burnham Secures Strong Labour Backing in Race to Succeed Keir Starmer
Global Markets Slide as Middle East Conflict Escalation Sends Oil Prices Higher
UK Prime Minister Keir Starmer Offers Condolences Following Death of Qatar’s Father Amir
UK Regional Innovation Policy Focuses on Research Clusters Across Scotland, Wales, and Northern England
UK Corporate Transparency Rules Set to Become More Strict Under Modern Slavery Reform Plans
UK Civil Service Estate Strategy Shifts Government Activity Away From London
UK Strengthens National Security Powers Through New Threat Designations
Greater Manchester Police Conduct Drink and Drug Driving Operations After Football Events
UK Government Advances Darlington Economic Campus With Construction Milestone
UK Authorities Increase Football-Related Security Operations After Tournament Fixtures
UK Invests Fifty-One Million Pounds in National Cryogenics Facility and Regional Innovation Hubs
UK Moves Toward Tougher Modern Slavery Reporting Rules With Corporate Penalties
UK Government Reports Forty-Three Million Pounds in Savings From Office Estate Reform
×